Amid a worldwide reset in semiconductor technique, India’s clean-slate benefit lies in frugal innovation, chiplet structure, and agile microfabs. With no legacy constraints, we now have
the liberty to form the longer term moderately than imitate the previous.
“There may be an Indian in each chip,” I typically say, considering of corporations like Cadence, Synopsys, Utilized Supplies, and TSMC. Having been on this business since my days at Texas Devices (TI), I can say semiconductors usually are not new to India. Now we have contributed throughout the ecosystem—mental property (IP), digital design automation (EDA) instruments, and even tools design, every thing however manufacturing.
We might not but have a homegrown semiconductor firm, however that is our second to construct that ecosystem. The business is ready to double over the subsequent 8-10 years, and India has a singular alternative to form its entry, not by replicating outdated fashions, however by innovating from first ideas.
The ‘newness’ of India
Being a brand new participant in semiconductors is definitely a bonus; we don’t carry the burden of legacy programs. I noticed this first-hand at TI, the place manufacturing and product growth adopted a extra conventional, structured path.
At present, nevertheless, we now have entry to trendy instruments and approaches, and we not want to stick to outdated strategies.
India is understood for its companies, and I additionally ran a companies firm. Finally, I recognised that controlling our future meant specializing in merchandise, not companies. Take SoCs (system-on-chip), for instance: corporations like Qualcomm tried monolithic integration—placing every thing into one big chip. However that drove up value, diminished yield, and prospects disliked being locked right into a single vendor.
Now the business is shifting in direction of chiplets, that are modular parts optimised for various processes and built-in on the bundle stage. This method permits larger flexibility, improved yields, and fosters innovation throughout varied system parts.
India, unencumbered by legacy baggage, is effectively positioned to undertake this mannequin.
Frugal engineering and teamwork
We’re naturally frugal, raised to make each rupee rely. With as we speak’s change charges, our cash stretches even additional. However frugal engineering isn’t just about saving, it’s about eliminating waste from the outset. Meaning designing merchandise with environment friendly use of supplies, resilient provide chains, and minimal useful resource loss. It’s a mindset we develop up with.
One among India’s largest benefits is scalable human expertise. Slightly than everybody constructing separate groups, there may be immense potential in pooling expert assets throughout features.
Think about two corporations—Firm A and Firm B—working in related areas. They might compete, however there may be room for collaboration, significantly the place one possesses experience the opposite lacks. From design and advertising to prototyping, many expertise usually are not obtainable internally. If corporations are prepared to share even a number of skilled hours per week, they will scale back prices and amplify collective success.
At a macro stage, two corporations supporting one another develop stronger collectively. That is particularly essential for Indian startups, the place constructing a chip requires various capabilities, from design and testing to packaging and enterprise technique. In contrast to software program, the place most points are dealt with internally, {hardware} calls for collaboration throughout companies and features.
Nevertheless, one in every of India’s core challenges is a reluctance to collaborate. We are sometimes raised to prioritise particular person success. If another person excels, the query turns into, “Why not you?” as an alternative of “How can we succeed collectively?”
But chip growth shouldn’t be a one-person job. It requires multidisciplinary teamwork and the flexibility to recognise each other’s strengths. In additional collaborative cultures, youngsters are taught early to work in groups and have fun others’ successes. That mindset, recognising that combining strengths yields higher outcomes is crucial for semiconductor innovation.
Frugal engineering additionally entails sharing assets. In manufacturing, we now have been conditioned to imagine that solely mega fabs costing $10 billion or extra can succeed. These huge services, established by dominant gamers, create obstacles for frugal innovators.
But it surely was not all the time this fashion. At TI, we had our personal fab, constructed to not fill capability however to help the product. The product drove the fab, not the opposite means round. That logic has since reversed. We should rethink our method if we’re to foster innovation with restricted assets.
The technique of fabs
Fabs decide which merchandise will be run and the way prospects work together with you. From a fab’s perspective, the perfect state of affairs is steady manufacturing of a single product. This minimises the necessity for innovation and course of change. The choice is to comply with a hard and fast course of design package (PDK), making certain consistency and profitability.
Fabs search massive shoppers who can utilise full capability, moderately than smaller startups requesting restricted wafer runs. They purpose to maximise revenue, typically by means of excessive pricing, as an alternative of pursuing lower-cost processes that rely on greater quantity for related income.
Globally, a number of main gamers, TSMC, Nvidia, Intel (underneath restructuring), AMD, Micron, Samsung, amongst others, dominate the semiconductor business. Fewer than ten corporations successfully management the worldwide market. Their scale and working buildings form business behaviour. Whereas there may be nothing inherently incorrect with this mannequin, it’s centralised and resource-intensive.
India needn’t emulate this construction. Now we have a chance to disrupt it, guided by frugal engineering. This isn’t merely about spending much less; it’s about rethinking how we design, manufacture, and distribute semiconductors.
Slightly than investing $10 billion right into a mega fab in a single metropolis, we might construct smaller, decentralised fabs throughout the nation. A fab consumes huge assets and is very energy-intensive. Constructed smaller, these fabs may very well be regionally managed, extra inclusive, and tailor-made to regional wants.
Traditionally, fabs have centered on logic and reminiscence, optimised for optimum transistor density, as seen with corporations like Nvidia. Nevertheless, there’s a rising shift in direction of subsystems: sensors, MEMS, analogue parts, and chiplets. These kind the ‘past compute’ ecosystem, complementing moderately than changing the processor. They don’t require mega fabs. Distributed manufacturing is extra acceptable.
Earlier, semiconductor growth centered closely on transistor modelling, structure, and scaling. At present, engineers should design for application-specific programs in real-world contexts, significantly in sensing and embedded domains. Understanding the top use is significant. This evolution offers India a well timed alternative.
With a big base of succesful engineers and a spread of native challenges, India is a pure testbed for innovation. My sister, a physician educated in India, typically says her time right here made her a greater doctor because of the variety and quantity of instances she encountered. Equally, Indian engineers face points the world is making an attempt to resolve: meals safety, clear water, local weather change. Indian engineering can ship world options rooted in affordability and relevance.
At conventional companies like TI and Nationwide Semiconductor, product growth usually started with a enterprise case: What’s the ROI, and may prospects afford it? The main target was largely on prosperous markets. India can undertake a distinct method, which incorporates fixing significant issues first, after which constructing reasonably priced know-how round them.
Take into account an issue approached by Nvidia in comparison with an Indian startup. Nvidia would possibly develop a high-end chip requiring superior cooling programs. An Indian startup would possibly supply an 80-90% efficient answer at a fraction of the fee—sensible and accessible.
A lot of the semiconductor business has been pushed by the economics of silicon focussed on shrinking dimension and lowering value. Nevertheless, materials science is opening new avenues. Smaller wafer sizes, comparable to 15.24cm (6-inch) or 20.32cm (8-inch), can nonetheless yield wonderful outcomes when mixed with new supplies, particularly in energy electronics and high-voltage purposes.
Alternatives in semiconductors are huge and never solely in design but in addition in system physics, supplies science, and system integration. For college kids in electronics or semiconductor fields, this can be a outstanding time. Flexibility and curiosity will likely be key.
To conclude, I suggest a shift in direction of agile, distributed fabs requiring lower than $10 million in funding as a viable various to billion-dollar mega-projects. This mannequin aligns with India’s wants and strengths, enabling us to guide with purpose-driven, reasonably priced innovation for the world.
Startup ecosystem and authorities help
There are two authorities schemes: the Design Linked Incentive (DLI) and the Manufacturing Linked Incentive (PLI). DLI focuses on semiconductor design, whereas PLI helps element manufacturing, comparable to cables, shows, and PCBs. Collectively, they purpose to construct an entire electronics ecosystem. Innovation will likely be key not solely in chip design but in addition in packaging, meeting, and system integration.
Nevertheless, funding stays a problem for Indian semiconductor startups. Final yr, the federal government centered on manufacturing, together with fabs and packaging. This yr, the main focus is shifting in direction of supporting startups by means of schemes promoted by MeitY. The DLI has elevated funding and can be encouraging non-public funding.
The said goal is to fund 100 startups and scale not less than 5 to $100 million in income inside 5 years. The long-term objective is for 2 Indian corporations to enter the worldwide prime 10 in a decade. Reaching it will require an entire ecosystem extending past simply design expertise.
Many Indian startups are design-focused, however they battle to transform their concepts into remaining merchandise. They typically turn out to be IP corporations because of the lack of producing help. In distinction, Taiwan has produced quite a few chip corporations with important revenues, together with MediaTek. Their success stems from expertise throughout the total worth chain, one thing India should now develop.
Crossing the ‘valley of dying’ from design to full product growth requires infrastructure, funding, IP help, and partnerships. Collaborating with skilled Taiwanese corporations might assist speed up this journey.
Strategy to manufacturing
India should take incremental steps, beginning with OSAT (outsourced semiconductor meeting and check), and testing is a practical method. These require decrease funding and are comparatively much less advanced. Full-scale fabs can comply with. There isn’t any speedy have to pursue superior nodes comparable to 3nm or 4nm. Mature nodes like 130nm and 180nm are extra appropriate beginning factors. These applied sciences are simpler to implement and will succeed inside a three- to five-year timeline.
The concept of microfabs, requiring investments of underneath $10 million, throughout a number of places might increase consciousness and encourage hands-on expertise. These fabs can produce non-logic parts, comparable to sensors or energy gadgets, that are making them excellent for studying and experimentation.
India’s schooling system should additionally shift to allow extra sensible studying. Engineering college students must be inspired to tinker, construct, check, and debug actual circuits. This shift in mindset, alongside strong manufacturing, is crucial.
Constructing for India and the world
Demand shouldn’t be a priority. Whereas the market is world, success begins at house. Merchandise should first remedy native issues, be dependable, and straightforward to keep up. As soon as confirmed regionally, they are often related globally. India has the chance to create options that aren’t solely reasonably priced however genuinely wanted worldwide.
India stands at a semiconductor inflexion level, paying homage to the Nineteen Eighties when transistors grew to become commercially viable. Now’s the time to create thousands and thousands of revolutionary merchandise. The federal government is enabling this journey. For younger engineers, this can be a uncommon and thrilling alternative to contribute to a worldwide transformation rooted in India.
This text is predicated on a session titled ‘Alternatives for Entrepreneurs within the Indian Semiconductor Trade,’ delivered by Raja Manickam, Founder and CEO of iVP Semiconductor, at IEW 2025, held on the KTPO Expo Centre, Bengaluru. It has been transcribed and curated by Shubha Mitra, journalist at EFY.
